CI&T Q3 Earnings Fall Short of Estimates, Revenues Surpass

Core Insights - CI&T Inc. reported diluted earnings of 7 cents per share in Q3 2025, an 81.1% increase year over year, but missed the Zacks Consensus Estimate by 12.5% [1] - Adjusted diluted earnings were 9 cents, up 16.4% year over year [1] - Revenues reached $127.3 million, a 13.4% increase year over year, beating the Zacks Consensus Estimate by 1.98% [1] Revenue Breakdown - Financial Services revenues increased 51% year over year to $48.1 million, accounting for 37.8% of total revenues [2] - Retail and Industrial Goods revenues grew 11.4% year over year to $26.2 million, representing 20.6% of total revenues [2] - Consumer Goods revenues were $24.7 million, down 1.8% year over year, making up 19.4% of total revenues [2] - Technology and Telecommunications revenues fell 5% year over year to $12.1 million, accounting for 9.5% of total revenues [3] - Life Sciences revenues rose 4.6% year over year to $9.7 million, representing 7.6% of total revenues [3] - Other revenues declined 32.8% year over year to $6.5 million, accounting for 5.1% of total revenues [3] Geographic Performance - North America contributed $54.6 million, a 6.2% year-over-year increase, representing 42.9% of total revenues [4] - LATAM delivered $61.3 million, marking a robust 35.3% year-over-year increase, accounting for 48.2% of total revenues [4] - New Markets accounted for 9% of total revenues, declining 26.3% year over year [4] Client Contributions - The Top Client generated $14.9 million in revenues, up 71.1% year over year, representing 11.7% of total revenues [5] - Revenues from the Top 10 Clients reached $56.2 million, an increase of 19.5% year over year, accounting for 44.2% of total revenues [5] Operating Performance - Adjusted Gross profit increased 3.2% year over year to $43.1 million, with a gross margin contraction of 340 basis points to 33.9% [6] - Adjusted EBITDA was $23.5 million, up 7.5% year over year, with an adjusted EBITDA margin of 18.5%, declining 100 basis points [6] - Adjusted Net Profit increased 10.6% year over year to $11.3 million, resulting in an adjusted profit margin of 8.9% [6] Employee Growth - CI&T ended Q3 2025 with 7,858 employees, reflecting a 16.3% year-over-year increase in headcount [7] Cash Flow and Balance Sheet - As of September 30, 2025, CI&T had cash and cash equivalents of $43.3 million, down from $58.6 million as of June 30, 2025 [10] - The company generated $12.8 million in cash from operating activities in the reported quarter, compared to $14 million in the previous quarter [11] Future Guidance - For Q4 2025, CI&T anticipates revenues between $130.4 million and $132.6 million, implying approximately 12.5% year-over-year growth at constant currency [12] - For 2025, the company expects organic revenue growth at constant currency to be in the range of 12.5% to 13.0% year over year [12] - CI&T projects an Adjusted EBITDA margin between 18% and 20% [12]